Mutual funds pool investors' money to purchase a variety of investments according to the fund's objectives. They allow you to invest without the risk of committing to a particular company. However, there are thousands of mutual funds, and they come with a variety of sales charges and fees. Depending on the amount you have to invest and the length of time you plan to hold the fund, you may want to consider purchasing B Class shares.
Although there are several classes of mutual funds, the three most common classes are called, simply, A, B and C. Class A shares generally have up-front sales charges, or front-end loads. Class B shares have no sales charges when you purchase the fund, but will charge a fee known as a back-end load if you sell the fund within a certain period of time. Class C shares also have no upfront charges, and a smaller back-end load, but typically have higher fees than the other classes.